Richard Evans, first thing I'd suggest is get some good comps to see if the ARV is correct (the $45k).Good comps:-Similar (Age, bed/bath, story, sqft, etc...)

My wife and I did something similar a few years ago, but with some big differences.

Craigs list has a "skilled trades services" category (or something similar).

Until I saw this in my extended family, I similarly felt like the original sellers in any 'wholesale' deal were really getting shafted.

I know what they've paid for similar units.

I need to verify zoning... however, many neighbors have already done similar conversions.

They seem similar to other companies I've researched.

If you fail to show a sufficient income similar to other businesses in the industry, the failure rate increases......why, because if you are a mechanic opening a repair shop and after three years you are not making more than any other mechanic working at other shops in the area, why are you doing it, why be in business, right or wrong, it is assumed you'll be doing what is most profitable for you, and you may just shut the doors and go get a job.

Existing thread with similar topic:http://www.biggerpockets.com/forums/21/topics/76750-real-estate-agent

For 100 units, I suspect people have investigated selling and didn't like the possible outcome and didn't bother trying.Are there any other similar projects nearby?